[UPDATED] EnerDel Plans to Move Quickly With New Production

Now that EnerDel has chosen Hancock County to locate its third Indiana facility, President Rick Stanley tells Inside INdiana Business the company is in a race to get the new full-scale manufacturing site in operation. The lithium-ion battery manufacturer says it will invest $237 million to lease and equip an existing building at Axcess70 near the Hancock-Marion County line. He says the company is still awaiting confirmation on a $30 million grant from the U.S. Department of Energy. Stanley will be a guest on Inside INdiana Business Television this weekend.

The Hancock County site will increase EnerDel's Indiana work force to 1,400.

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Orginally posted January 21, 2010

INDIANAPOLIS – Governor Mitch Daniels joined executives from lithium-ion battery maker EnerDel today to announce the company will locate its newest manufacturing operation in Hancock County and create 500 more jobs, bringing the company to a total of 1,400 in three Central Indiana locations.

EnerDel announced in 2008 it would add 900 jobs by expanding its Indianapolis research and cell production center, building a new battery pack assembly center in Noblesville and committing to locate a full-scale manufacturing site at a to be determined location in Indiana. This announcement means the company will grow by another 500 jobs as it prepares to open its third location in Hancock County.

The developer of lithium-ion batteries for hybrid, plug-in electric and electric vehicles will invest $237 million to lease and equip more than 200,000 square feet of Building 1 located at Axcess70 at Mount Comfort Road in Hancock County.

“We’re out to be the capital of the electric vehicle industry and EnerDel is at the center of those hopes,” said Daniels.

Founded in 2004, EnerDel produces lithium-ion batteries for automotive manufacturers that are lighter, occupy less space, provide more power and have a longer life than the nickel metal hydride batteries found in today's hybrid vehicles. The company has commercial and strategic partnerships with industry leading companies such as THINK, Volvo, Nissan, Mazda, the United States Military, Japan Post, AC Transit, Portland General Electric and ITOCHU Corp.

“EnerDel is excited to be expanding to our third Indiana facility. We have experienced a tremendous amount of success and have benefited greatly from the advanced manufacturing expertise here in the state. The state of Indiana and local communities have been fantastic partners throughout the years and we look forward to continuing these strong relationships,” said Charles Gassenheimer, chairman and chief executive officer, Ener1, Inc.

EnerDel plans to begin hiring additional engineers, production associates and administrative staff in the next couple of months as the new facility is readied for production.

The Indiana Economic Development Corporation offered EnerDel up to $21.1 million in performance-based tax credits and up to $200,000 in training grants based on the company’s job creation plans. Hancock County will consider additional property tax abatement and other incentives totaling approximately $30 million at the request of the company and the Hancock County Economic Development Corporation.

“EnerDel is a true trailblazer in the energy storage and clean-technology sector and the type of company we are proud to welcome into our community. We will work hard to ensure EnerDel’s continued success as they grow into Hancock County and create jobs for our residents,” said Derek Towle, president of the Hancock County Commissioners.

EnerDel is owned by Ener1, Inc., (Nasdaq: HEV), which also has ownership stake in THINK, a Norwegian electric car manufacturer which announced earlier this month that it will locate its North American production facility in Elkhart, Ind. creating more than 400 jobs by 2013.

About EnerDel

EnerDel is based in Indianapolis, IN. The company has one of the most advanced lithium-ion battery manufacturing facilities in the world, and the only one of its kind in the United States.

About IEDCCreated by Governor Mitch Daniels in 2005 to replace the former Department of Commerce, the Indiana Economic Development Corporation is governed by a 12-member board chaired by Governor Daniels. Mitch Roob serves as the chief executive officer of the IEDC. For more information about IEDC, visit www.iedc.in.gov.

Source: Indiana Economic Development Corp.

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INDIANAPOLIS -- ¨Lithium-ion battery manufacturer EnerDel announced today it will invest $237 million in a new manufacturing plant near its Indianapolis headquarters in order to meet anticipated demand for advanced battery systems used in both automotive and stationary smart grid applications. Backed by a mix of private funds and public incentives, the new facilities will more than double EnerDel's U.S. production capacity and create 1,400 new jobs.

The announcement came during a special unveiling at the EnerDel facility of the new EnerDel powered C30 electric vehicle platform for Volvo Cars, the best selling platform within Volvo. The unveiling was to commemorate 18 months of collaboration between the two companies, with EnerDel and Volvo management outlining the C30 ˇs imminent path to commercialization to gathered media and investors. Indiana Governor Mitch Daniels joined EnerDel and Volvo executives for the event.

State and local economic development incentives are valued at $69.9 million, which comprises a state incentive package of $21.3 million and Hancock County package valued at $48.6 million. EnerDel has also applied for an additional $9 million from Federal Government development programs.

"Demand for high-performance lithium-ion battery systems is expanding dramatically, for vehicles of all sizes as well as the utility grid, and we are going to be fully prepared to meet it with a product stamped Made in America" said Charles Gassenheimer, Chairman and CEO of EnerDel parent company Ener1, Inc. (NASDAQ:HEV).

The new plant will give EnerDel the capacity to produce battery packs for approximately 600,000 hybrid electric vehicles, or 60,000 battery electric cars. It will be financed through a $118.5 million grant awarded under the federal stimulus package under a 50:50 cost-share program, of which EnerDel plans to spend $60 million in 2010. The project represents just the first stage of the company's expansion plans in the Indianapolis area.

"We're out to be the capital of the electric vehicle industry and EnerDel is at the center of those hopes," said Governor Daniels.

As demand for electric drivetrain technology grows, Indiana is emerging as the industry's central player. And a location affording easy access to both domestic and transplant car manufacturers in the U.S. is seen as a critical advantage for EnerDel.

"Indiana is fast becoming the Silicon Valley of the 21st Century auto industry," Gassenheimer said. "We're here because of the talent, the automotive industry experience and the remarkable network of electric drivetrain companies that call this state home. This immediately follows our electric vehicle partner THINK's announcement to establish their U.S. manufacturing facility here, in Indiana."

EnerDel will immediately begin to occupy more than 211,500 square feet of newly-constructed space in the Axcess70 industrial park in Mt. Comfort, Indiana, with a two year option to purchase the entire facility which is comprised of 423,000 square feet. The company is currently in the process of hiring new engineers, production associates and other staff as build-out progresses. Axcess 70 is a 153 acre industrial and distribution park developed by a joint venture between Browning Investments, Inc. and Real Estate Capital Partners and consists of two speculative buildings located just north of the I-70/Mt. Comfort Interchange, which is currently being expanded.

EnerDel has commercial and strategic partnerships with industry leading companies including Volvo, THINK, Nissan and Mazda, and is supplying batteries for a prototype hybrid version of the Humvee being tested by the U.S. Army. EnerDel batteries have recently been chosen for smart grid projects in the U.S. and Japan.

The company also has an ongoing application for a long-term, low-interest loan under the federal Advanced Technology Vehicle Manufacturing program, which was created under the 2007 Energy and Security Independence Act 2007 to help U.S. automakers and their suppliers meet stronger fuel economy performance standards.

About EnerDel:

EnerDel, a subsidiary of Ener1, Inc. (NASDAQ: HEV), develops and manufactures compact, high performance lithium-ion batteries to power the next generation of hybrid, plug-in hybrid and pure electric vehicles. Led by an experienced team of engineers and energy system experts, the company is building proprietary innovations based on technology originally pioneered at the Argonne National Laboratory.

EnerDel produces its batteries at its state-of-the-art facilities in Indianapolis, Indiana, and is expecting to be the first company to mass-produce a cost-competitive lithium-ion battery for hybrid and electric vehicles. In addition to the automobile market, applications for EnerDel lithium-ion battery technology include medical, military, aerospace, electric utility and other growing markets.